SAN ANTONIO (March 19, 2026) – The San Antonio City Council on Wednesday approved revisions to the displacement language within the city’s Tax Increment Financing (TIF) Program Policy, responding to concerns about potential residential displacement linked to publicly funded development projects. The changes aim to strengthen protections for residents in areas undergoing revitalization through TIF-funded initiatives.
The move follows discussions initiated by Councilmembers earlier this year regarding Tax Increment Reinvestment Zones (TIRZs) and the broader TIF policy. City staff briefed the Planning and Community Development Committee in January and February 2026, laying the groundwork for the revisions approved Wednesday.
District 4 Councilmember Edward Mungia spearheaded the effort to revise the policy, citing the need for clearer language regarding displacement prevention. “In the midst of a housing affordability crisis, the last thing our residents need is for displacement to occur at or near sites of development projects using public funds,” Mungia stated. “We have a responsibility to ensure that we preserve and protect the current affordable housing stock in our city while balancing our commitment to supporting economic development projects.”
The previous policy, approved December 15, 2022, defined direct residential displacement as the permanent relocation of households on the proposed project site. The revised policy expands this definition to include displacement within future phases of a project, as well as properties adjacent to the project site controlled by the developer. This broader scope aims to address concerns that development pressure could extend beyond the immediate project footprint.
In addition to the expanded definition, the modern policy mandates a review of any direct residential displacement that has occurred within the two years prior to a project’s application date. All proposed projects will now be subject to a Displacement Impact Assessment (DIA).
The DIA, according to the revised policy, will provide data on the vulnerability of the surrounding neighborhood – defined as a minimum of one-quarter mile from the project site – to potential increases in property values. Projects scoring a “Medium” or “High” risk on the DIA will be required to include a plan to mitigate potential displacement effects.
The changes to the TIF policy come as the city utilizes TIRZs to fund major development projects, including a new downtown Spurs basketball arena and a Minor League Baseball stadium, as well as improvements to the San Antonio Zoo. These projects have drawn scrutiny from some councilmembers who worry that the benefits of development are not equitably distributed, and that they may exacerbate existing housing affordability challenges. Councilwoman Teri Castillo, speaking at a special council meeting in September 2025, described the situation as “the construction and facilitation of the haves and have-nots,” and warned of wealth concentration in the downtown core.
Councilmember Mungia expressed hope that the revised policy will enable the City Council to produce more informed decisions about future development projects, ensuring they align with the intent of the TIF program. The city has been utilizing TIF since 1998.
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